Free To Choose Network

Why has the case for free trade — made plainly by Adam Smith 250 years ago — never managed to win over the public? Friedman thinks Smith already gave us the answer. Free trade serves the broad public, but works against the concentrated interests of merchants and manufacturers. And those with concentrated interests fight harder than those with diffuse ones. Smith called it "interested sophistry." Friedman says there's little to add. The argument hasn't changed, and neither has the opposition.

Let's all go to the movies? In THIS economy?

Join Lou and Phil as they chat about movie mayhem on this week's episode of Happy Hour Econ.

https://happyhourecon.org/

Even if you set aside every other consideration, government redistribution of wealth is still super inefficient.

You paid for the ticket. You sat down with your popcorn. And then came ten straight minutes of pharmaceutical ads — before Toy Story. Something has gone very wrong with the movie theater experience, and it's not just the prices.

Lou and Phil dig into why on this week's Happy Hour Econ episode.

https://happyhourecon.org/

Adam Smith, The Division of Labor, and Voluntary Cooperation:

There's a reason no single company, however large, tries to do everything itself. The costs aren't just financial. They're in resources, people, and know-how.

The solution Adam Smith identified in a small pin factory is the same one operating on a global scale today: specialize in what you do best, exchange with others who do the same, and everyone ends up considerably better off.

That's not a political argument. It's how voluntary cooperation (read: free markets) works — and always has.

This year marks the 250th anniversary of the Declaration of Independence. At the time, it was a truly radical statement of political philosophy.

But how does it hold up, two and a half centuries later? What impact has it really had?

Join Judge Douglas Ginsburg as he speaks with both experts and everyday people about the most iconic of America's founding documents and its effect on the entire world. Watch We Hold These Truths on YouTube today!

https://www.youtube.com/watch?v=Oc2Ij8NhP2E

When was the last time you saw a movie in the theater? Odds are good it's been a little while.

The movie industry is... weird, both the making and the screening sides. And not necessarily in a good way. But these are still businesses, so the numbers need to add up somehow. And yet, going to a movie in the theater is happening less and less often for most people.

Join comedian Lou Perez and economist Phil Magness for this week's episode of Happy Hour Econ as they go behind the scenes of movie not-so-magic.

https://happyhourecon.org/

What does it actually take to build a governing majority? According to Milton Friedman, not a broad coalition of people who agree — but a series of targeted deals with concentrated groups. Find a bloc that will vote for you on the strength of one promise. Then another. Then another. Once you've assembled enough of them, you've got your 51%. The general public, whose interests are spread thin across every issue, can't compete with that kind of focused political pressure. Friedman added one caveat worth sitting with: special interests have historically needed to frame their agenda as something the whole country benefits from. The arithmetic is built from narrow stakes. The language used to justify it rarely is.

Actions have consequences, even if they're unintended. And as Milton also said, “One of the great mistakes is to judge policies and programs by their intentions rather than their results.”

Look, access to consumer credit is a pretty good thing, but it does make it easy to feel like you're paying for your lunch with Uber Eats Fun Bucks instead of actual dollars. And that's something most of us should be more aware of.

Lou and Phil break down spending, debt, and airport fisticuffs in this week's episode of Happy Hour Econ. Give it a listen!

https://happyhourecon.org/